Green GDP

Green GDP is an important and current topic that is relevant to the UPSC exam. It forms a part of the current affairs, environment and ecology, polity and also social issues segments of the IAS exam. The following article gives you a brief about the concept of green GDP.

The green gross domestic product is an index of economic growth where the environmental consequences of that growth is factored in the conventional GDP of a nation. Green GDP monetizes biodiversity loss and also accounts for costs attributed to climate change. A few environmental experts prefer physical indicators (like “carbon dioxide emissions per year” or “waste per capita”), which may be aggregated to indices such as the “Sustainable Development Index”.

Green GDP Vs GDP

To calculate green GDP net natural capital consumption, including resource depletion, environmental degradation, and protective and restorative environmental initiatives is subtracted from traditional GDP. These calculations can also be applied to the net domestic product (NDP), which deducts the depreciation of produced capital from GDP. In each case, it is required to convert the resource activity into a monetary value, since it is in this manner that indicators are usually expressed in national accounts.

Consider the following statements:

  1. Green GDP considers the environmental factors.
  2. GDP is same as NDP.

Which of the following statements is correct?

  1. A) Only 1
  2. B) Only 2
  3. C) Both 1 & 2
  4. D) None of the above

Answer: A

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